Are These the Best 4 Small Cap Stocks Under $5?
With the advent of Robinhood and other trading platforms, penny stocks are seeing heightened popularity. This is due to a few reasons. For one, penny stocks are under $5. This means that they are quite accessible to traders of all types. It’s also worth noting that because they are cheap, they often can be quite volatile.
Second, the opportunity with penny stocks can at times be much greater than with traditional stocks. This is due to the fact that many of them have yet to see their full momentum. Additionally, there are plenty of penny stocks to watch that are new to the market. This means that there is an opportunity that can be capitalized upon by those who are willing to find it.
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Similar to any investment, the most prudent step one can take toward making gains is research. This means finding out everything one can about a given security. Investors should look at factors such as volume, short interest, long term price action, and what the business has planned in the long term. These factors can help to determine whether or not a penny stock is worth adding to one’s list.
Penny Stocks to Watch
- 22nd Century Group Inc. (XXII Stock Report)
- EMCORE Corporation (EMKR Stock Report)
- Ocean Power Technologies Inc. (OPTT Stock Report)
- SG Blocks Inc. (SGBX Stock Report)
And with so many choices for penny stocks to watch, making a list can seem like a daunting task. But, with the right research in hand and one’s portfolio goals in mind, finding penny stocks to watch can be easier than previously imagined. With all of this in mind, here are four penny stocks to watch heading into the holiday week ahead.
Penny Stocks to Watch #1: 22nd Century Group Inc.
22nd Century Group Inc. operates as a biotechnology company that works with both tobacco and cannabis. The company states that through its developed technology, it can alter the amount of nicotine in the tobacco plant. Additionally, the company states that this same technology can be utilized to shift the levels of different cannabinoids in the cannabis plant.
While this may not seem like a big deal, the company has the potential to completely alter both the tobacco and cannabis landscapes. By producing tobacco with less nicotine, the company could effectively offer new ways for people to quite smoking tobacco or reduce nicotine consumption altogether.
What To Watch With 22nd Century
Similarly, its work on cannabis could be a game changer when it comes to formulating new products for sale in the wide cannabis industry. Recently, James Mish, the CEO of 22nd Century Group, purchased 100,000 shares of the company at a strike price of $0.93. In the past month, shares of XXII stock have shot up by over 46%. In the past six months, that number shoots up to over 67%. With a great deal of bullish momentum backed by its advanced biotechnology, XXII stock could continue to be considered a penny stock to watch.
Penny Stocks to Watch #2: EMCORE Corporation
EMCORE Corporation is a provider of mixed-signal products that are used in both government contracts as well as for broadband communications. The company states that it provides a wide range of telecommunication hardware products that can be used in a variety of applications. Based out of California, EMCORE Corp. has been working on providing 5G infrastructure and optical sensing technology in the past few years. With the increased popularity of 5G connectivity, EMCORE has seen heightened interest in the past few months.
What To Watch With EMCORE
On Thursday, November 19th, the company stated that it plans to release its Q4 financial results for 2020 on December 1st. Announcements like these are extremely important to investors as they allow the public to see what the company looks like from a fiscal perspective.
In addition, these announcements can also yield important data about what business a company currently has and what it is doing to improve upon it in the future. Over the past month, shares of EMKR stock are up by around 13%. In the past six months however, shares are up by over 47%. With 5G penny stocks continuing to be in focus, EMKR stock could remain on the top of investors watchlists.
Penny Stocks to Watch #3: Ocean Power Technologies Inc.
Ocean Power Technologies Inc. is as the name suggests, a producer and provider of cost-effective power technology that utilizes energy from the ocean. The company states that its PowerBuoy product allows for reliable and clean energy to be produced on a regular basis. In addition, this platform allows for communications and real time data to be transmitted from the offshore power base.
The company also states that it works in the development of offshore oil and gas mining as well as science/research regarding its operations. While Ocean Power has not released any news in the past month or so, OPTT shares have jumped significantly in value. On November 20th, shares of OPTT stock shot up by around 10% during intraday trading.
What To Watch With Ocean Power
In the past six months, shares of OPTT stock are up by over 432%. So why the big jump in value? Well, one of the primary reasons is the result of the presidential election in the U.S. As a U.S. owned company, Joe Biden’s renewable energy plan means that more money may be invested in the sector. As a leader in renewable energy, Ocean Power has a lot that it could potentially gain from a Biden presidency. Of course, a lot depends on what legislation goes into place to back the plan, but for now things are looking quite good. With its bullish momentum of the past few months, OPTT stock may be considered a penny stock to watch.
Penny Stocks to Watch #4: SG Blocks Inc.
SG Blocks Inc. is a company that works in the innovation of high-tech shipping containers. This includes containers for use in both shipping and construction applications. In addition to this, the company has been working with the popular EV penny stock, Blink Charging Inc. (BLNK Stock Report).
The two recently announced a partnership that will be used to create solar-powered charging containers. Michael Farkas, CEO of Blink Charging stated that “by deploying our leading EV charging technology in SG Blocks’ modular structures, Blink expects to be able to greatly increase our geographic footprint supporting the growing number of electric vehicles and the need for increased charging locations.”
What To Watch With SG Blocks
While SG Blocks Inc. is not necessarily an EV penny stock, it does have a correlation to the EV market. This deal saw shares of SGBX shooting up by 48% on Friday, November 16th, when it was announced. Since October 20th, shares of SGBX stock have shot up by over 17%.
Additionally, on Thursday, November 19th, the company reported its Q3 2020 results. Paul Gavin, CEO of SG Blocks stated that “the third quarter was a strong quarter for SG Blocks, as we accelerated our momentum from the first half of the year.” With this strong performance and a potentially bright future, SG Blocks is definitely an interesting penny stock to watch for the long term.